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Garuda Indonesia: outlook improves following fleet deferrals

Garuda Indonesia is taking a nearly two-year holiday from adding aircraft, as part of an attempt to restore profitability. Deliveries of 10 737 MAX 8s have been deferred and Garuda is trying to cancel its remaining nine commitments for ATR 72-600s.

Garuda is focussing on increasing utilsation, which will enable the airline to pursue further capacity growth without expanding the fleet. Garuda particularly believes it can squeeze out more from its A330s, ATR 72s and CRJ1000s, which are now utilised below industry norms.

Garuda plans to pursue modest domestic capacity growth and much faster international expansion. China and India are the main target markets as inbound demand surges.

But even with the new moderation in strategy, many challenges remain for the Indonesian flag carrier.

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